Sol Meliá has announced financial results for the first quarter 2002 which show signs of a gradual recovery after the strong drop in business seen after the terrorist attacks in New York towards the end of last year, even though the recovery of the world economy in general has been slower than expected. Revenues reached 227.3 million Euros, 3,2% less than in 2001, while RevPar (revenue per available room) for all of the company’s hotels decreased by 4.8% compared to the first quarter 2001. This figure, however, is a considerable improvement over the final quarter of 2001 when RevPar fell by 17.6%.

In the Sol Meliá European Resort Division, RevPar in the first quarter 2002 fell by 0.5% after having seen a reduction of 15.9% in the last quarter of 2001. The results could have been even better were it not for significant reductions in business in Tunisia after September 11th., weak occupancy in the Balearic Islands and the poor weather over the Easter holidays.

In the European City Division RevPar in the first quarter 2002 fell by 5.4% compared to the same period in the previous year, aafter seeing a 17.2% drop in the last quarter of 2001. The Division is still suffering the effects of September 11th. particularly in major European cities, especially Paris, London, Rome, Milan and Madrid, destinations that have a certain reliance on the American market.

Finally, the Americas Division, the area of the company that most suffered teh impact of 11th. Septmebr, has begun to recover and has seen average occupancy grow to 69% for the first quarter. RevPar, however, has fallen by 15.1% compared to the first quarter 2001 after having seen a reduction of 31.8% in the final quarter of 2001. Further improvements are expected for future quarters.

The figures confiirm the projections made by Sol Meliá at the close of 2001 in which it was expected that full recovery from the crisis that has had such a strong impact on the tourism industry would be seen in the second half of 2002.

Earnings before interest, taxes, depreciation, amortisation and rentals (EBITDAR) for Sol Meliá over the first quarter reached 63.6 million Euros, 19.2% less than for the same period in 2001, while earnings before interest, taxes, depreciation and amortisation (EBITDA) reached 54.4 million Euros, a decrease of 23.3% over 2001. In the last quarter of 2001 compared to the same priod in the previous year, the same figures fell by 40.4% and 79.5% respectively, indicating that the impact of 11th. September is beginning to weaken over time.

The net profits of Sol Meliá during the first quarter of 2002 were 9.6 million Euros, 68.7% less than in the first quarter 2001 when Sol Meliá also generated extraordinary profits of 9.2 million Euros.

During the first quarter 2002 Sol Meliá has added 4 new hotels to its portfolio, taking the total to 352 hotels with 86,516 rooms in 30 countries on 4 continents. The new hotels confirm Sol Meliá‘s interest in strengthening its leadership position in the Spanish market and, above all, in city hotels. At 31st. March, 2002, the company had signed agreements to add another 63 hotels over the next two years.

——-